Oil and gas industry forms a major part of a country’s economy. There are various other sectors in the economy that are dependent on the oil and gas production.
However, unlike all the other industries in the world, oil and gas remain a bit backward in terms of technology upgrade and usage though it is marching quickly towards the use of the latest tools and techniques.
A report published in October 2017 stated offshore platforms are running only at 77% of the maximum production potential on an average. This is a significant indicator that rigorous use of analytics can lead to loads of improvement in the industry in the years to come.
Need for Analytics
Like all the other industries in various parts of the world the oil & gas industry has also embraced the use of data and analytics. And it’s no wonder that things are working absolutely in their favor! The industry has learned that data when stored has no value. But, when the same data tapped it can open innumerable new horizons and take businesses to greater heights.
Oil and gas industry is a complex one given the complexities of the operations, highly sophisticated systems and timely government regulations in relation to environment and safety. In such a scenario, the use of analytics has enabled the convergence of various systems in one unit and the use of information based technologies. Below are a few benefits of analytics-
1. Collection and analyzation of all the data
2. Sharing the important data with decision makers
3. The better understanding of the complex equipment and their performance
Essentials for advanced analytics:
1. Data is the heart of analytics. Oil and gas companies have huge amounts of unused data. They can make use of the data for exploiting analytics.
2. Since, the emergence of analytics, more and more oil and gas companies are preparing towards making the most of it.
How Analytics can help in Oil and Gas Production?
Estimates have given insights that making use of production analytics by the oil & gas industry could boost the global average underground recovery by up to 10%. This is as good as unearthing additional 1 trillion barrel of oil equivalents.
There have been instances where companies increased production in a span of 2 years by 50%. Such reports are pieces of evidence that if oil & gas companies pursue productivity improvements systematically, there can be significant gains.
1. One of the main reasons for the performance lag in the oil and gas industry is due to the complexity of the production process as a whole. Use of analytics reduces the complexity of the operations. They make use of a combination of data science and computing power in order to create advanced solutions for production problems.
2. Production analytics make the collection and use of gigantic amounts of data in the oil & gas industry effective. This, in turn, makes the use of data easy leading to production efficiencies.
3. With the help of Oil and Gas Production Analytics, oil and gas companies are able to develop algorithms which predict the occurrence of oil-in-water incidents. This gives enough time to the operators to avert such a happening altogether. Once, such an incident is prevented, operators could give time to pursue other fruitful production activities.
4. Another crucial role of analytics is a reduction of downtime due to the failure of equipment’s crucial to production. With the help of analytics, it is possible to predict failures thus keeping the operators prepared.
5. Analytics can be used to predict the probability of pressure build-ups and to reduce the size of the pressure spike. By doing this, the operator will be in a position to achieve 1-2% gain in production when made completely operational.
6. With the help of analytics different subsystems can be studied more efficiently, thereby reducing risk and help inaccurate decision making.
7. Analytics can help the oil and gas sector in identifying geological features for the purpose of oil exploration.
8. With the help of AI enabled equipment, it is possible to increase the production efficiency by reducing the downtime.
9. Oil & Gas companies have huge amounts of stored data. This causes the huge cost to the companies. However, with the help, big data such cost can be reduced and data can be captured in real-time.